Mid-Quarter Business Update from NN, Inc.
Expectations for profitable sales growth and adjusted EBITDA in 2026
Company is focused on unlocking shareholder value through strategic initiatives
NN, Inc. (NASDAQ: NNBR), a global leader in engineering and manufacturing high-precision components, has recently provided an insightful business update detailing its performance and ongoing strategic transformation. This update aims to keep investors informed about the company’s expectations for the upcoming fiscal periods.
For fiscal 2025, NN anticipates breaking multiple annual records on a comparable basis, highlighting its sustained operational momentum and enhanced business fundamentals.
Key Highlights:
- NN forecasts that adjusted EBITDA for the full year 2025 will reach historic levels. This expectation reflects a third consecutive year of growth both in terms of dollar amounts and as a percentage of sales.
- For the fourth quarter of 2025, adjusted EBITDA and adjusted gross margins are expected to hit the company’s ambitious goals of 14% and 20%, respectively, surpassing previous plans by over two years.
- NN's performance in the first three quarters of 2025 shows an impressive improvement over the previous year in adjusted EBITDA and free cash flow.
- The company is also on track to generate positive free cash flow for the third consecutive year, fueled by adjustments in 2025 and proactive cash flow management despite rising precious metal costs.
- Looking ahead, NN predicts a significant increase in year-over-year sales growth for 2026, with expectations for consistent net sales growth every fiscal quarter. This growth is anticipated to stem from an improving market outlook and a record number of more than 170 sales growth initiatives being launched.
Commercial Update:
- NN has been effectively executing its commercial priorities, achieving on-time, high-quality production while also winning new business consistently.
- The expected new business wins for the full year 2025 are anticipated to align with the company’s initial guidance, portraying a stable growth trajectory.
- With a record target of $200 million in new business wins over three years, NN remains on track to meet this ambitious goal.
- The recent business developments are poised to drive solid year-over-year sales growth, margin expansion, and continued positive adjusted EBITDA.
- NN's sales growth team is at an all-time high, with over 800 new program opportunities translating to more than $800 million in annual value, demonstrating a successful closed opportunity hit rate exceeding 20%.
Strategic Update:
- The company is implementing a focused strategy to enhance its balance sheet, strengthen its competitive edge in the market, and create meaningful shareholder value.
- NN is advancing its preferred equity refinancing initiative, with plans to engage the market shortly.
- This year has seen successful mergers and acquisitions (M&A) activities, with several prospects currently under review. NN is focusing on opportunities that could significantly accelerate its growth trajectory.
- Potential candidates for acquisition include both transformational and smaller tuck-in opportunities that would align with the company’s growth and efficiency goals.
- A virtual Investor Day, where NN will discuss these strategic endeavors and future plans, will be announced soon.
“NN is experiencing the positive results of our multi-year transformation efforts, achieving record adjusted EBITDA and new sales wins, and establishing a solid foundation for ongoing success,” stated Harold Bevis, President and CEO of NN, Inc. “As we approach a significant revenue inflection point, we are excited about the potential for year-over-year net sales growth. Our efforts are yielding results in both the market recovery and via the launch of numerous new programs. We are optimistic that these endeavors will help us exceed our multi-year targets.”
Bevis further mentioned, “The momentum of our transformation is substantial as we transition from 2025 into 2026. We are committed to generating shareholder value through addressing our balance sheet and refinancing initiatives while continuing our M&A efforts. These strategic actions are designed to enhance sales growth, broaden our operational scale, and elevate our overall equity value.”
ABOUT NN
NN, Inc. operates as a diversified industrial company, leveraging advanced engineering expertise and extensive materials science knowledge to create high-precision components and assemblies globally. The company's headquarters are located in Charlotte, and it has facilities spread across North America, Europe, South America, and Asia.
For more details about NN and its range of products, please visit www.nninc.com.
Frequently Asked Questions
What is the latest financial forecast for NN, Inc.?
NN forecasts record adjusted EBITDA and sales growth for fiscal 2026, underpinning a strong financial outlook.
How is NN enhancing shareholder value?
Through refinancing, strategic M&A initiatives, and a targeted approach to sales growth, NN aims to improve shareholder value significantly.
What key strategies is NN employing for growth?
NN is focused on improving its balance sheet and launching over 170 new sales initiatives, aiming for consistent quarterly growth.
Where is NN, Inc. headquartered?
NN is headquartered in Charlotte, North Carolina, with global operations in several regions.
How can investors learn more about NN, Inc.?
Investors can find detailed information and updates by visiting NN's official website at www.nninc.com.
